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NDIC begins Heritage Bank liquidation as CBN revokes licence

The Nigeria Deposit Insurance Corporation (NDIC) has commenced liquidation processes for Heritage Bank Limited. The move followed the revocation of the banking license of  the bank by the Central Bank of Nigeria (CBN) and subsequent appointment of NDIC as the Liquidator.

The apex bank on Monday, announced the revocation of the operating licence of Heritage Bank Plc with immediate effect.

In a statement issued by CBN acting Director, Corporate Communications, Mrs. Hakama Sidi Ali, the apex bank said the move was in accordance with its mandate to promote a sound financial system in Nigeria and in exercise of its powers under Section 12 (1l of the Banks and Other Financial Act (BOFIA) 2020.

The central bank pointed out that the Board and Management of the bank had not been able to improve the bank’s financial performance, a situation which constitutes a threat to financial stability.

This followed a period during which the CBN engaged with the bank and prescribed various supervisory steps intended to stem the decline.

Sidi Ali said, “Regrettably, the bank has continued to suffer and has no reasonable prospects of recovery, thereby making the revocation of the license the next necessary step.”

The NDIC role as bank liquidator is backed by Section 12(2) of BOFIA, 2020,  and in accordance with Section 55 sub-section 1 & 2 of the NDIC Act 2023.

The corporation commenced the liquidation process of the failed bank with immediate verification and payment of insured deposits to the bank depositors.

“Depositors of the bank that have alternate account within the industry will be paid up to the insured amount of N5 million per depositor using their Bank Verification Number (BVN) to locate their alternate account. While depositors with funds in excess of N5 million will be paid liquidation dividend upon realization of the bank’s assets and recovery of debts owed to the bank,” the corporation said.

According to NDIC, Verification and Payment of Depositors without alternate bank account requires that they visit the nearest branch of the bank with proof of account ownership, verifiable means of identification such as driver’s license, permanent voter’s card, National Identity Card, together with their alternate account and Bank Verification Number (BVN) for the verification of their deposits and subsequent payment of insured sums.

Alternatively, such customers can file online claim by visiting the NDIC website claims page, download and fill the claims forms and upload the required documentation.

In a statement, NDIC Director Communication & Public Affairs, Bashir A. Nuhu advised creditors to visit the nearest branch of the bank to file their claims or via the online platform. The process of payment of creditors will commence immediately after all depositors have been paid.

He said that debtors that are yet to complete the repayment of loans are advised to contact the Corporation’s Asset Management Department (AMD).

“The NDIC wishes to assure the entire banking public of its commitment to the continued safety of depositors’ funds in all licensed banks. As such, depositors are urged to continue their banking businesses without fear as banks whose licenses have not been revoked remain safe and sound,” he said.

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